After a long career at Barron's, I joined Forbes as San Francisco bureau chief in December 2010. I've been writing about technology and investing for more than 25 years. With the Tech Trade, I've picked up where I left off when I was writing the Tech Trader Daily blog at Barrons.com. When I'm not working, you can find me riding my road bike around the Bay Area hills, managing my fantasy baseball team, rooting for my beloved Phillies and Eagles and hanging out in the Valley with my family. You can follow me on Facebook, on Twitter (@savitz), and on Google+.

Under terms of the deal, Lucas will be paid half in cash and half in the form of about 40 million Disney shares.

“Lucasfilm reflects the extraordinary passion, vision, and storytelling of its founder, George Lucas,” Disney CEO Robert Iger said in a statement. “This transaction combines a world-class portfolio of content including Star Wars, one of the greatest family entertainment franchises of all time, with Disney’s unique and unparalleled creativity across multiple platforms, businesses, and markets to generate sustained growth and drive significant long-term value.”

Lucas said in a statement that it is “now time for me to pass Star Wars on to a new generation of filmmakers.”

“I’ve always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime,” Lucas said. “I’m confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney’s reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products.”

The deal includes not only Star Wars but also other businesses operated by Lucasfilm, including LucasArts, Industrial Light & Magic and Skywalker Sound. Disney said the current plan is for Lucasfilm employees to remain in their current locations.

Kathleen Kennedy, now co-chairman of Lucasfilm, becomes president of the company, reporting to Disney Chairman Alan Horn. She’s also acting as brand manager for Star Wars. The announcement said Kennedy will serve as executive producer on new films in the franchise, with Lucas as creative consultant. The announcement notes that Star Wars Episode 7 is scheduled for release in 2015, with more films expected to follow. No word yet on who will direct Episode 7.

Update: Speaking on CNBC, Robert Iger said the deal will be slightly dilutive for the first two years after the close, and then accretive after that.

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Lucas… Lucas Lucas. Disney is only going to steal the Star Wars name and molest it for money. If you wanted Star Wars to survive beyond you, you should have created a Star Wars Committee to act as an independent governing body for all things Star Wars related. An organization whose sole purpose for being is the maintenance of Star Wars lore and canon. This organization could have been used to fund the arts, to create a place for independent writers and filmmakers to come and learn the art of film making. As well a the creation of an official Star Wars museum that tells the whole Expanded Universe lore of the saga. This could have been used a dedicated fiscal organization to promotion of Star Wars products without being forced to have them degraded with other stories like Mickey, Song of the South, etc. This is bad move, not only are throwing away the integrity of your creation your are alienating your fan base, the people who spend their money on your creation. This is a bad, almost anyone can tell you this a bad move. You don’t throw the people who give you money to the wolves, you don’t screw over your customer base. It’s bad business, it’s bad ethics, it’s bad common sense.

Lucas has been molesting the Star Wars name for money for DECADES. He did the same thing with the most recent Indiana Jones movie.

There is a long, rich history of him not caring anything at all about anything as long as he gets lots of money from it. You need look no further than the long, long, LONG list of absolutely terrible games based on Star Wars–or just watch Episode 3.

Perhaps everyone wins in the end. It will be interesting to see how that may effect the current relationship Dark Horse Comics has with exclusive rights to create and publish Star Wars comics. Hopefully, that will not change at all.

OBI WAN KENOBI But… something…. something’s different! It was never like this before, I… I sense somethi-

OBI WAN KENOBI’s face drops as we dolly out to reveal that he has just been shot dead, even though he was already a ghost, which actually is more awesome if you think about it.

As OBI WAN KENOBI’s body slumps to the floor, we see his attacker standing behind him, holding a large blaster rifle which seems too big for his short stature. He removes his helmet, two large ears flopping outward as he does so.

Disney has done wonders in the entertainments business, and not just in terms of the box office. Disney has done wonders for franchises like Marvel, and will continue to do the same with their smart leadership, and ability to utilize capital.

Star Wars has a cult like following among young and old that can only be mirrored by few. (Apple) Whether Disney changes the franchise for better or worse in the eyes of fanboys is irrelevant, because they will certainly find a way to outpace the balance sheets.

Eric good article. Just wondering do you know how long George Lucas, and Disney had been planning this? Or be in talks?It appears to literally just come out of the blue. Also what are your thoughts on what direction should the franchise go in? Series of films, webisodes, or maybe link up with HBO or Showtime, and do an exclusive television series, or something that no one has thought of?

What has happened in the world? Maybe some of us don’t want a new Star Wars film. Maybe some of us would like to see some things remain sacred and untouched. But nooooo… Nemo turned into a Great White shark and swallowed the whole galaxy (far, far away).

These are truly sad days. Princess Leia ditches the cinnamon bun hairstyle and metal bikini for an eye patch and mermaid costume. Indiana Jones gives up his professorship in archaeology to help look for 64 lost Dalmatians. Jabba the Hut loses 1,750 pounds after discovering the Bounce Bounce Tigger workout craze. What else can we expect from Disney buying Lucasfilm? I feel like old George sold us out.